§ 9-32-13-24 — Relocation of new motor vehicle dealers

Indiana § 9-32-13-24

• Jurisdiction: Indiana
• Title 9: MOTOR VEHICLES
• Art. 32: DEALER SERVICES
• Ch. 13: Unfair Practices

Text

(a) This section does not apply to the
relocation of a new motor vehicle dealer to a location that is not more
than two (2) miles from its established place of business.
(b) This section does not apply to the reopening or replacement in
a relevant market area of a closed dealership that was closed within the
preceding three hundred sixty-five (365) days, if the established place
of business of the reopened or replacement dealer is within two (2)
miles of the established place of business of the closed dealership.
(c) This section does not apply to a new motor vehicle dealer
located in a county having a population of more than one hundred
thousand (100,000) if:
(1) the new motor vehicle dealer relocates to a site that is located
at a distance greater than the existing distance of another new
motor vehicle dealer of the same line make before the relocation;
and
(2) the site of the relocation is outside an area that is within a
radius of four (4) miles from another new motor vehicle dealer of
the same line make;
but does apply to a new motor vehicle dealer that, before January 1,
2013, had been engaged in the process of relocating but had not
physically relocated to the new intended site by January 1, 2013, and
to a new motor vehicle dealer that began engaging in the process of
relocating on or after January 1, 2013.
(d) Before a franchisor enters into a franchise establishing or
relocating a new motor vehicle dealer within a relevant market area
where the same line make is represented, the franchisor shall give
written notice to each new motor vehicle dealer of the same line make
in the relevant market area of the franchisor's intention to establish an
additional dealer or to relocate an existing dealer within that relevant
market area.
(e) Not later than thirty (30) days after:
(1) receiving the notice provided for in subsection (d); or
(2) the end of any appeal procedure provided by the franchisor;
a new motor vehicle dealer may bring a declaratory judgment action
before the division to determine whether good cause exists for the
establishing or relocating of a proposed new motor vehicle dealer. If an
action is filed under this section, the franchisor may not establish or
relocate the proposed new motor vehicle dealer until the division has
rendered a decision on the matter. An action brought under this section
shall be given precedence over all other matters pending before the
division.
(f) In determining whether good cause exists for establishing or
relocating an additional new motor vehicle dealer for the same line
make, the division shall take into consideration the existing
circumstances, including the following:
(1) Permanency of the investment.
(2) Effect on the retail new motor vehicle business and the
consuming public in the relevant market area.
(3) Whether it is injurious or beneficial to the public welfare.
(4) Whether the new motor vehicle dealers of the same line make
in that relevant market area are providing adequate competition
and convenient consumer care for the motor vehicles of that line
make in that market area, including the adequacy of motor vehicle
sales and qualified service personnel.
(5) Whether the establishment or relocation of the new motor
vehicle dealer would promote competition.
(6) Growth or decline of the population and the number of new
motor vehicle registrations in the relevant market area.
(7) The effect on the relocating dealer of a denial of its relocation
into the relevant market area.

Legislative History

As added by P.L.92-2013, SEC.78.